Still echoing the echoes of the Great Recession of 2008 and the distressing moments of 2020 with the pandemic, the global financial market once again has its eyes fixed on the United States’ economic horizon. And from the looks of it, dark clouds are gathering.
Recent data revealed that requests Bankruptcy protection in the US has reached levels reminiscent of past crises, raising the concerns of many market observers.
It was in this scenario that the WhaleWire platform echoed its analyses, warning about the similarity of these numbers with the moments of economic instability of 2008 and 2020. For many analysts, such an indicator is like a red light, highlighting that the economy may not be in its best shape. best moment, which is generally followed by significant falls in the stock market.
Milton Berg, a market veteran known for his work alongside big names such as George Soros and Stanley Druckenmiller, did not hide his concern. For Berg, Wall Street appears to be underestimating the risk of a new recession. And his words resonate with a certain urgency: “The reality is that the economy has been weak and could become weaker,” he said.
The situation at Silicon Valley Bank was also a cause for alarm for Berg. The bank, which recently collapsed, may not be an isolated case, but a harbinger of what may come for other banks, pension funds and financial institutions. The increase in interest rates, which has been constant over the last 18 months, has already had an impact on the fixed income portfolios of many institutions.
Berg, who has long experience with charts and technical indicators, does not hide his concerns. For him, the stock market currently resembles an unstable tightrope walker, which at any moment could lose its balance and fall.
Most alarming, according to Berg, is that the S&P 500, which is a global benchmark, could see a drop of up to 45% or more. And with the US economy showing signs of fragility, the repercussions of this for the global market, including the cryptocurrency market, are uncertain, but certainly of great magnitude.
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